(Here’s CNBC Pro’s live coverage of Tuesday’s analyst call and Wall Street chat. Please refresh every 20-30 minutes to see the latest posts.) Broadcom and the Chinese electric vehicle maker were among the stocks analysts talked about on Tuesday. Bernstein named Broadcom the best idea, saying the chipmaker could jump more than 20%. Bank of America and Goldman Sachs, meanwhile, initiated Zeekr with a buy rating, calling for strong gains for China’s EV maker. Check out the latest calls and chats below. All times are ET. 7:29 am: Bank of America lists Logitech as top pick Logitech may benefit from AI trade, according to Bank of America. The bank maintains a buy rating for the stock, and is listed as a top pick in the EU IT hardware sector. Analyst Didier Scemama also raised his price target to $113. Logitech shares are up 2% on the year and could add another 17%, if Scemama’s price target holds true. Scemama believes Logitech’s higher margins and strong cash generation mean it will continue to trade at a premium compared to its peers. Analysts think that Microsoft’s recently announced Copilot extension, which will incorporate new AI features, could lead to a pick-up in laptops and tablets. This could benefit Logitech by making their product offering look better for end use. “We believe that the launch of PC AI this year and next year should help LOGN sell more PC peripherals such as mice and keyboards as well as higher margin categories such as webcams,” Scemama wrote. – Lisa Kailai Han 7:16 am: Morgan Stanley raises Heico stock to equal weight Morgan Stanley believes that the year-to-date outperformance of Heico is justified by more positive industry grounds. The bank upgraded the aerospace electronics company’s stock to an equal weight from its previous overweight rating. Analyst Kristine Liwag accompanied the move by raising her price target to $225 from $178. Heico shares have risen 24% year to date. Liwag’s forecast is only 1% from Monday’s close. As one of the catalysts, Liwag points to the strength in the performance of its commercial aftermarket business resulting from regulatory scrutiny following several quality control issues from Boeing. “In addition, the previous valuation methodology using GAAP P/E underestimates the company’s cash generation because new acquisitions have been larger than historical norms, creating non-cash amortization headwinds that are larger than GAAP earnings,” the analyst added. For now, they see a balanced risk reward considering Heico’s better-than-expected results and improved investor sentiment. “Today, aerospace faces a similar supply, high-demand environment for new aircraft, despite various supply constraints,” added Liwag. — Lisa Kailai Han 7:08 am: Barclays lowers Stanley Black & Decker to equal weight Shares of Stanley Black & Decker are trading at too high a level to justify, according to Barclays. The bank downgraded industrial stocks to equal weight from its weight. The bank accompanied the move by lowering its price target to $86 from $100, indicating that the stock could remain stagnant from current levels. As one of the reasons for the downgrade, analyst Julian Mitchell pointed to Wall Street’s earnings forecast, which he believes now seems unjustifiably high. “Slowing sales could be the key to rapid EPS growth,” analysts wrote, noting that tax rate hikes could pose a similar threat. Mitchell added that the stock’s sales and production figures will face downward pressure from swollen inventories. The company may need to engage in further restructuring to reduce costs. Meanwhile, US-imposed tariffs on imported Chinese products could also hurt Stanley Black & Decker shares. Leverage on the company’s balance sheet also appears to be very high, and is unlikely to decrease in the near term, Mitchell said. Shares of Stanley Black & Decker are down 12% year over year. — Lisa Kailai Han 6:49 am: Bank of America adds Nvidia to the list of the best investment ideas Bank of America adds Nvidia to its US1 list, which represents some of the best investment ideas. Nvidia, the manufacturer of graphics processing units, has been one of the biggest beneficiaries of the new artificial intelligence trade. The company has led the latest bull market rally and is up 132% this year. Last month, Nvidia shares rose 9% in one day after the company reported its latest quarterly results, which topped analysts’ expectations on both the top and bottom lines. BofA has a buy rating on Nvidia. – Lisa Kailai Han 6:37 am: Wells Fargo highlights American Express as top stock pick Wells Fargo on Tuesday listed American Express as one of its top stock calls. The bank reiterated its overweight rating on the credit card stock but raised its price target to $275 from $265. The updated estimate is about 16% higher than where American Express stock closed Monday afternoon. American Express shares have rallied 26% this year. Despite this, analyst Donald Fandetti still calls the growth story “underappreciated”. “With the inflection in global acceptance and the level of volume penetration also below the US, we believe that international will be the strongest segment for the next decade and beyond,” wrote the analyst, who also highlighted the stock as the top choice in consumer finance. Fandetti noted that overseas competition is tough, but less intense compared to the US American Express card penetration between 5% and 7% in foreign markets, lower than the domestic rate of more than 20%. When this number increases, the company can see a useful addition. “We see international as critical to the algorithm that 10% + rev growth and mid-teens EPS. International revs should open above 10% +,” the analyst added. — Lisa Kailai Han 6:18 am: Canaccord Genuity upgrades SentinelOne on the back of a recent sell-off A recent pullback means it’s time to buy SentinelOne stock, according to Canaccord Genuity. The financial services company upgraded the cybersecurity stock to a buy rating, but cut its price target to $23 from $28. This updated estimate shows a potential upside of 34% for SentinelOne stock. SentinelOne shares have lost 37% this year. S YTD Mount SentinelOne in 2024 Analyst Kingsley Crane called the sell-off “well overdone” and the catalyst for his upgrade, along with the company’s recently good execution. “We see SentinelOne as a long-term secular winner due to the company’s positioning as a data-driven security platform, facilitated by its roots in Endpoint Security and its strong position in the Enterprise mid-market,” he wrote. Meanwhile, SentinelOne’s solid foundation should also help companies gain greater IT market share. The company has also demonstrated its ability to generate better-than-expected profits. “With global enterprises held back by resource constraints, we strongly believe that increased automation without human intervention is a clear advantage over modern adversaries,” added Crane. — Lisa Kailai Han 5:55 am: Oppenheimer starts Flutter Entertainment in outperform Flutter Entertainment could be the big winner ahead, according to Oppenheimer. The financial firm initiated shares of the sports betting and gambling company with a higher rating, also setting a price target of $240. Flutter shares have increased almost 6% this year, with analyst Jed Kelly’s price target indicating that the stock could rise by 27%. As a catalyst, the analyst points to the company’s structural advantages, while giving Flutter a huge edge for growth in the domestic market. Ultimately, Kelly expects a duology to emerge between FanDuel — whose majority owner is Flutter — and DraftKings. “Hold advantages allow for significant promotion speed in higher unit economy to generate a massive edge in product stickiness/customer retention,” he wrote. Meanwhile, the company also offers the highest US parlay mix and gives players “the most built-in options with a seamless bet-building experience,” Kelly added. While higher taxes pose a risk to the company, analysts believe Flutter is best positioned to absorb the growing workload. Reduced competition and legalization of other countries may also lower these taxes in the future. – Lisa Kailai Han 5:47 am: Wall Street analysts see bright prospects ahead for Chinese EV maker Zeekr New player Zeekr could give it a run for its money, according to some Wall Street analysts. Goldman Sachs and Bank of America initiated the Chinese electric vehicle maker with a buy rating. Goldman analyst Tina Hou set a 12-month price target of $34, while Bank of America analyst Ming Hsun Lee set a $35 price target. The estimates indicate potential gains of 33% and 37% from Monday’s close. “We see ZEEKR as well positioned to ride domestic brand, premiumization, and electrification trends in China’s EV market,” Lee wrote at BofA. “Using its R&D capabilities, ZEEKR has advantages in vehicle design, drivability, safety, intelligent cabin, centralized E/E architecture, e-drive system, charging experience, and user community.” While Zeekr commands 1.3% of China’s electric vehicle market by 2023, Lee expects that number to rise to 2.5% by 2026, helped by its “strong model portfolio.” Both Lee and Hou noted how the brand could benefit from Geely Automobile’s ownership. The company can leverage Geely’s engineering strength, manufacturing capabilities, brand equity, strong supply chain and global footprint to expand overseas. “We believe ZEEKR is in a better position to compete by adopting an asset-light manufacturing model that leverages the parent company’s (Geely) factory capacity, which helps reduce its heavy capex burden,” Hou said. Zeekr can increase its profits by launching an attractive model that generates continuous sales volume, which will ultimately drive economies of scale and build the brand, Hou added. Zeekr went public in the US last month, listing its IPO at $21. Since then, the stock is up 22%. – Lisa Kailai Han 5:47 am: Bernstein named Broadcom the best idea Broadcom’s earnings this year primed to expand, according to Bernstein. Analyst Stacy Rasgon named the chipmaker as one of the best ideas. He has an outperform rating on the stock along with a $1,600 price target, which represents a 21% upside. The stock has declined in 2024, rising almost 19%. AVGO YTD mountain AVGO year to date Despite this result, Rasgon thinks the value of the company “remains compelling, inline with history vs industry for a story that has only gotten better with age.” On top of that, it “remains among the lowest in all ‘AI play’ semis, with a better narrative than many of its peers,” said the analyst. Broadcom shares trade at about 28 times forward earnings, while AI darling Nvidia has 42 times. AMD is also trading at 46 times forward earnings. – Fred Imbert
All the talk of Wall Street is that the market is moving since Tuesday
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